Tech Mahindra Q2 Results: A Mixed Bag for Investors
Tech Mahindra Ltd.’s profit for the July-September period rose 5% on a sequential basis, missing analysts’ estimates. The software services provider’s bottom line stood at Rs 1,194.5 crore during the second quarter of the financial year ending March 2026, compared to Rs 1,140 crore clocked in the preceding quarter, according to its notification to the exchanges on Tuesday. Analysts tracked by Bloomberg had pegged the profit at Rs 1,285 crore.
Revenue for the current quarter rose 4.8% to Rs 13,995 crore, against a relatively flat top line at Rs 13,351 crore for the quarter ended June. Bloomberg analysts had estimated a revenue of Rs 13,351 crore. For more information on Tech Mahindra Q2 results, visit our website.
Margin Expansion and Attrition Rate
Earnings before interest and tax rose 15% to Rs 1,699.3 crore against Rs 1,477.1 crore in the previous quarter, while margin expanded to Rs 12.1% sequentially, beating analysts’ estimates. The margin expansion happened on the back of currency tailwinds, productivity and increase in volume, according to Tech Mahindra’s CFO Rohit Anand. To learn more about Indian IT sector trends, read our latest article.
The last-12-month IT attrition rate increased to 12.8% in the second quarter of FY26, against 12.6% in quarter ended June 30. The company reported the highest constant-currency growth in the last 10 quarters at 1.6%. The CC growth stood at 1.4% in the previous quarter. For updates on Nifty and Sensex news, follow our blog.
Dollar Revenue and Dividend Announcement
The dollar revenue rose 1.4% sequentially but fell 0.2% year-on-year to $1,586 million. Apart from this, the IT giant also announced a second interim dividend of Rs 15 per equity share for fiscal 2026. The company announced a distribution of nearly Rs 1,468 crore to shareholders. To know more about stock market news India, visit our website.
The board has fixed Oct. 21 as the record date for the purpose of dividend payment. The company said it will pay the interim dividend on or before Nov. 12. Revenue up 4.8% to Rs 13,994.90 crore versus Rs 13,351.20 crore. Net profit up 5% to Rs 1,194.50 crore versus Rs 1,140.60 crore. EBIT up 15% to Rs 1,699.30 crore versus Rs 1,477.10 crore. Margin at 12.1% versus 11.1%. For the latest updates on Indian stock market trends, follow our blog.
Stock Performance and Analyst Estimates
The earnings were announced after market hours. The stock settled 1.18% higher at Rs 1,468 apiece on the NSE, compared to a 0.32% advance in the benchmark Nifty 50. Tech Mahindra’s shares have fallen 13.26% in the last 12 months and 13.96% year-to-date. Out of the 46 analysts tracking the company, 23 maintain a ‘buy’ rating, nine recommend a ‘hold’ and 14 suggest ‘sell’, according to Bloomberg data. The average 12-month consensus price target of Rs 1,588.93 implies an upside of 8.2%. To learn more about Q2 results of Indian companies, read our latest article.
Overall, Tech Mahindra’s Q2 results were a mixed bag for investors. While the company’s revenue and margin expansion were positives, the miss on profit estimates and increase in attrition rate were negatives. Investors will be closely watching the company’s performance in the coming quarters to see if it can meet their expectations. For more information on stock market analysis India, visit our website.
Conclusion
In conclusion, Tech Mahindra’s Q2 results were a mixed bag for investors. The company’s revenue and margin expansion were positives, but the miss on profit estimates and increase in attrition rate were negatives. Investors will be closely watching the company’s performance in the coming quarters to see if it can meet their expectations. To stay updated with the latest Indian stock market news, follow our blog.
